United Group said Unite Students Accommodation Fund (USAF) has acquired a property under development in Durham for £34m.
The 'forward funded' development would be opened in September 2018 and would provide a home for 363 students.
The development was expected to deliver a yield on cost of 6.4% in its first year of operation.
Based on current valuations, it would be valued at a yield of 5.5%, resulting in a profit on cost of about £5m.
The deal would be funded with USAF's share of proceeds from recent disposals.